TELETRADER News
9/21/2022, 8:47 PM
(Source: TeleTrader)
Powell: Soft landing will be challenging
United States Federal Reserve Chair Jerome Powell stated on Wednesday, during a press conference, that reaching a soft landing "will be challenging."
"No one knows whether this process [of monetary policy tightening] will lead to a recession, or how significant that recession will be," Powell underlined adding that "chances of a soft landing will diminish to the extent that policy needs to be more restrictive or restrictive for longer."
Powell reiterated that it is difficult to achieve price stability with a soft landing. The Federal Reserve's September economic forecasts showed that the central bank expects its federal funds rate to hit 4.6% in 2023, while the estimates for the figure in 2024 stand at 3.9%.